Bharti Walmart in eye of storm after probe news

NEW DELHI: The Indian unit of Walmart Stores Inc, the world's biggest retailer by sales, found itself at the centre of a media and political firestorm after the suspension of a number of employees as a result of an anti-corruption probe became public.

First reported by ET in its edition on Friday (November 23), the suspensions are the outcome of an ongoing probe by the Bentonville, Arkansas-based retailer into its units in India, China and Brazil. The investigation is intended to unearth whether the local arms of Walmart violated the US Foreign Corruption Practices Act, an anti-bribery law.

The disclosures - which attracted copious media attention, both Indian and global - come at an inopportune moment for the Congress-led government, which is facing Opposition demands that Parliament should vote on the decision to allow foreign direct investment in retail.

A spokeswoman for Bharti Walmart, the Indian unit, declined to divulge details of the investigation. "As these matters are currently under review, it would be inappropriate for us to comment further on the specific allegations until we have concluded the investigations," she said in an emailed reply.

Those suspended included Pankaj Madan, the CFO, and members of the Indian unit's legal team. Raj Jain, the CEO of Bharti Walmart, is currently travelling and the Indian operations are being handled by Scott Price, Walmart's Asia head.

"Raj Jain is currently attending a long-applied-for family commitment function and scheduled to return to India on Monday. Scott Price is in India on a regular scheduled visit to align on and assist the India business," the company said.

The probe has been on for months with close to 50 auditors and investigators from KPMG and US law firm Greenberg Traurig scanning computers and questioning employees at Bharti Walmart's office in Gurgaon, according to people familiar with the probe.